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立法會 Legislative Council LC Paper No. CB(2)1851/15-16 Ref : CB2/PL/HA Report of the Panel on Home Affairs for submission to the Legislative Council Purpose 1. This report gives an account of the work of the Panel on Home Affairs ("the Panel") during the 2015-2016 Legislative Council ("LegCo") session. It will be tabled at the Council meeting of 6 July 2016 in accordance with Rule 77(14) of the Rules of Procedure of the Council. The Panel 2. The Panel was formed by a resolution passed by the Council on 8 July 1998 and as amended on 20 December 2000, 9 October 2002, 11 July 2007 and 2 July 2008 for the purpose of monitoring and examining Government policies and issues of public concern relating to district, community and rural matters, civic education, building management, youth matters, the provision of leisure and cultural services, the development of arts and culture, public entertainment, sport and recreation. The terms of reference of the Panel are in Appendix I. 3. The Panel comprises 24 members, with Hon Starry LEE Wai-king and Hon YIU Si-wing elected as its Chairman and Deputy Chairman respectively. The membership list of the Panel is in Appendix II. Major work District administration and management Enhancement of district administration 4. The Administration introduced a 17-month Pilot Scheme in Sham Shui Po and Yuen Long districts from April 2014 to August 2015 to empower their District Management Committees ("DMCs") 1 to tackle specific management and environmental hygiene problems. In the current legislative session, the 1 DMC is chaired by the respective District Officer and comprised the DC Chairman/Vice- Chairman, chairmen of DC committees and district representatives of the relevant frontline departments.

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Page 1: 立法會 - LegCo · - 2 - Administration briefed the Panel that in the light of the success of the Pilot Scheme, it had decided to extend the Pilot Scheme to all 18 districts in

立法會 Legislative Council

LC Paper No. CB(2)1851/15-16

Ref : CB2/PL/HA

Report of the Panel on Home Affairs for submission to the Legislative Council

Purpose

1. This report gives an account of the work of the Panel on Home Affairs ("the Panel") during the 2015-2016 Legislative Council ("LegCo") session. It will be tabled at the Council meeting of 6 July 2016 in accordance with Rule 77(14) of the Rules of Procedure of the Council.

The Panel

2. The Panel was formed by a resolution passed by the Council on 8 July 1998 and as amended on 20 December 2000, 9 October 2002, 11 July 2007 and 2 July 2008 for the purpose of monitoring and examining Government policies and issues of public concern relating to district, community and rural matters, civic education, building management, youth matters, the provision of leisure and cultural services, the development of arts and culture, public entertainment, sport and recreation. The terms of reference of the Panel are in Appendix I. 3. The Panel comprises 24 members, with Hon Starry LEE Wai-king and Hon YIU Si-wing elected as its Chairman and Deputy Chairman respectively. The membership list of the Panel is in Appendix II.

Major work

District administration and management

Enhancement of district administration

4. The Administration introduced a 17-month Pilot Scheme in Sham Shui Po and Yuen Long districts from April 2014 to August 2015 to empower their District Management Committees ("DMCs") 1 to tackle specific management and environmental hygiene problems. In the current legislative session, the

1 DMC is chaired by the respective District Officer and comprised the DC Chairman/Vice-Chairman, chairmen of DC committees and district representatives of the relevant frontline departments.

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Administration briefed the Panel that in the light of the success of the Pilot Scheme, it had decided to extend the Pilot Scheme to all 18 districts in the current term of District Council ("DC") and rename the Pilot Scheme as "District-led Actions Scheme" ("DAS"). Projects to be implemented under DAS sought to address long-standing district issues through the joint efforts of DC members, relevant departments and community organizations, to be steered and coordinated by DMCs. 5. Members in general expressed support for DAS which, in their view, would to a certain extent expand the power of DCs. Some members, however, considered that the Administration could still further enhance the role and functions of DCs in respect of district administration. For example, DCs should be delegated more power previously exercised by the two former Municipal Councils, and DCs could also take up responsibilities like street management, management of cultural and leisure facilities in districts, and organizing arts and cultural programmes to meet the needs of their districts. 6. The Administration explained that DAS sought to progressively take forward the concept of "addressing district issues at local level and capitalizing on local opportunities" as advocated by the Chief Executive ("CE"). Under DAS, relevant projects were to be initiated by DCs. Moreover, DCs would be fully engaged in the planning and implementation of their DAS projects. Inter-disciplinary efforts would also be made to assist in the implementation of the projects. The Administration envisaged that the 18 districts would propose about 30 DAS projects mostly related to district issues such as tackling environmental hygiene problems. The Administration has reserved an annual recurrent funding provision of $63 million for the 18 districts, and will create additional civil service posts and employ contract staff to support the implementation of DAS. Signature Project Scheme ("SPS")

7. CE announced in his 2013 Policy Address that a one-off allocation of $100 million would be earmarked for each district to initiate one to two projects under SPS which would address local needs, and have a visible and lasting impact on the community. A total of 27 projects2 have been proposed by the 18 DCs to construct new or upgrade existing district facilities. As at end of May 2016, 20 of the projects had been approved by the Finance Committee ("FC"), and FC's approval was pending for one project. Besides, five other projects which had received support from the Panel were still pending consideration by the Public Works Subcommittee ("PWSC").

2 The 27 projects include one project proposed by the Southern DC ("SDC"). However, on 17 March 2016, SDC agreed to shelve the implementation of its proposed project having regard to various factors. SDC will proceed to identify alternative project proposal(s) and will conduct public consultation.

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8. Some members expressed grave concern about the progress of SPS projects as a number of them were still pending consideration by PWSC and FC. They requested the Administration to explain how it would deal with the situation in which a certain project was not yet approved by FC before the prorogation of LegCo on 16 July 2016 and whether the DC concerned would have to carry out afresh the preliminary studies and consultation work for the project in question. The Administration advised that it hoped that FC would promptly examine the SPS projects and approve the funding as soon as possible to enable commencement of the related works for the earliest benefit of local residents. Nevertheless, in the event that the funding requests for these projects eventually were not approved by FC, the relevant DCs would consider the way forward having regard to district circumstances. Shop front extensions

9. The Panel was consulted on the legislative proposals for the proposed fixed penalty system to tackle shop front extensions by amending the Fixed Penalty (Public Cleanliness Offences) Ordinance (Cap. 570), as well as the related enforcement strategy and support measures. Members in general expressed support for the legislative proposals. Some members, however, expressed concern about the sufficiency of enforcement manpower and the availability of clear enforcement guidelines for frontline staff of the Food and Environmental Hygiene Department ("FEHD") and the Hong Kong Police Force ("HKPF") to ensure effective implementation of the proposed fixed penalty system. The Administration advised that it would consider allocating additional resources in the coming financial year for setting up more special task force teams under FEHD for the implementation of the fixed penalty system. Furthermore, FEHD would provide training and enforcement guidelines for their frontline staff to assist them in their enforcement work. HKPF would also ensure their frontline officers be aware of the relevant enforcement guidelines in order to provide the necessary assistance to other departments during inter-departmental operations. 10. The Administration advised that the proposed penalty level at $1,500 was set taking into consideration the outcome of the public consultation exercise3 and the penalty level of comparable offences under Cap. 570. In response to some members' view that a grace period should be provided, the Administration advised that the Fixed Penalty (Public Cleanliness Offences) (Amendment) Bill ("the Bill") to be introduced for the implementation of the proposed fixed penalty system would commence six months following its passage by LegCo.

3 The Home Affairs Department launched a public consultation exercise from 14 March to 14 July 2014 to seek public views on how problems associated with shop front extensions could be tackled more effectively.

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This was to allow sufficient time for the trade and other stakeholders to make necessary preparations and for extensive publicity to be made. After consulting the Panel, the Administration introduced the Bill into LegCo on 6 January 2016. The Bill was passed by LegCo on 18 March 2016. Use of public open space managed by the Leisure and Cultural Services Department ("LCSD")

11. The Administration briefed the Panel on the use of public open space managed by LCSD, including a progress update on the Tsim Sha Tsui ("TST") Waterfront Revitalization Plan. Members noted that LCSD managed over 1 500 parks and playgrounds of varying sizes providing leisure and recreational facilities. Members requested the Administration to increase the provision of elderly fitness equipment to meet the needs associated with the aging population. The Administration advised that in line with the initiatives to develop Hong Kong into an age-friendly city and to promote active aging as announced in the 2016 Policy Address, LCSD would provide about 150 sets of new elderly fitness equipment in parks and playgrounds in the 18 districts. The installation works of the facilities were expected to be completed in 2017-2018. 12. Members in general welcomed the increase in the number of pet gardens managed by LCSD from 19 to 41 between 2010-2011 and 1 May 2016. Some members suggested that additional pet gardens could be provided at certain venues in existing parks and waterfront promenades and requested LCSD to take on board the suggestions. The Administration undertook that it would actively follow up on members' suggestions in consultation with DCs concerned. Some members requested the Administration to explore initiatives to make public open spaces more interesting and vibrant, such as by showcasing artworks in parks so as to provide the public with the opportunity to appreciate art while using leisure and recreational facilities. The Administration advised that in recent years, LCSD had also launched new initiatives to add an arts and culture dimension to public open spaces and pleasure grounds, such as installation of innovative park furniture in two parks and display of public artwork in open spaces of Government venues. 13. On the TST Waterfront Revitalization Plan, members noted that the entire project was expected to be completed in the fourth quarter of 2018. The Panel requested the Administration to strive for enhancing and beautifying the waterfront area while allaying concern as to whether the development in the waterfront area would be over-commercialized. The Administration advised that under the modified plan, the TST East Promenade would remain as a public open space primarily for passive amenities. Apart from a food and beverage outlet currently managed by LCSD, no additional structure would be built.

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Culture and the arts

Development of arts space and a permanent office of Hong Kong Arts Development Council ("HKADC") at ex-Aberdeen Fire Station site4

14. The Panel was consulted on a proposed project to provide arts space and arts facilities, as well as office space for HKADC in the future development at ex-Aberdeen Fire Station site. Members noted that the proposed site was selected for its proximity to the existing ADC Artspace5 in Wong Chuk Hang and the future Wong Chuk Hang MTR station. Taking into account the needs of the arts sector and the views of SDC, the Administration considered that developing a new arts space at the site would create a cluster effect to facilitate the development of artists and arts groups. 15. Noting that the proposed project would provide only 28 artist studios for leasing to artists at an affordable rent, some members urged the Administration to develop more arts space to cater for the large demands of the arts sector. The Administration advised that apart from the proposed project, there would be collaboration between the Tai Po DC and HKADC to convert a vacant school building in Tai Po into an arts centre catering for mainly performing arts activities. On the selection of tenants under the proposed project, members noted that HKADC would set up an assessment panel comprising representatives from various arts sectors to vet tenancy applications based on the applicants' artistic standards. 16. Some members expressed concern about whether the provision of a permanent office for HKADC would lead to a reduction of the subvention for HKADC. The Administration advised that it would not reduce the subvention for HKADC. In future, HKADC would be required to pay rent at market rate for the permanent office with the Government recurrent subvention provided to HKADC. Besides, as HKADC would be responsible for management of the arts space and arts facilities, additional funding would be provided to HKADC. The funding application was supported by the Panel and approved by FC on 22 April 2016. The proposed project was scheduled for completion in 2022. Nomination of representatives of arts interests for HKADC

17. The current term of office of HKADC members will expire on 31 December 2016. In March 2015, a working group was set up by HKADC to review the arrangements in 2013 for nominating representatives of arts interests

4 The site at the junction of Wong Chuk Hang Road and Tong Bin Lane was previously occupied by the ex-Aberdeen Fire Station. 5 With the support of the Government and a private developer, HKADC implemented its first arts space scheme, namely "ADC Artspace", in Wong Chuk Hang since 2014 to provide 17 artist studios for 29 local artists.

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("the nomination exercise") for appointment to HKADC, and to make suggestions for the next nomination exercise to be held in 2016. After review, HKADC submitted a proposal to the Government concerning the nomination exercise in 2016. The Panel was briefed on the results of the review and actions to be taken to follow up the recommendations of HKADC. 18. With regard to the eligibility criteria for "individual arts workers" applying for participation in the nomination exercise, some members enquired why the criteria did not include renowned Mainland arts institutes' graduates who had moved to reside in Hong Kong and continued to engage in arts activities. The Administration explained that only graduates of local arts institutes would be eligible as they were considered to be more familiar with the local art scene. That said, the Administration advised that graduates of non-local arts institutes who engaged in arts activities in Hong Kong might fall into any one(s) of the recognized categories of "individual arts workers". In that case, the graduates would also be eligible to apply for participation in the nomination exercise. Some members also enquired why current local full-time students of arts programmes were not eligible to register as "individual arts workers". The Administration advised that HKADC had consulted the 10 art-form groups and conducted a one-month public consultation exercise in August 2015. Having considered the views collected, HKADC opined that it was more appropriate to allow graduates, not the undergraduates/full-time students who had yet to complete their arts programmes, to participate in the nomination exercise. 19. Some members questioned why the cross-arts interests voting system was proposed to be retained for the 2016 nomination exercise. They considered that registered voters might not be interested in casting votes in other arts interests which they were not familiar with. The Administration explained that given that arts activities often involved crossover of different art forms with interaction among arts interests, the cross-arts interests voting system was proposed to be retained to encourage nominated representatives to adopt a broader perspective covering different arts interests. The Administration advised that although a registered voter was allowed to cast one vote in each of the 10 arts interests, he/she was at liberty to cast vote(s) in any arts interests he/she wanted to. Reprovisioning of Shanghai Street refuse collection point ("RCP") and street sleepers' services units ("SSSU") to Hau Cheung Street for phase II development of the Yau Ma Tei Theatre ("YMTT") project

20. In order to release space for the implementation of the phase II development of the YMTT project, both the current Shanghai Street RCP and SSSU will be reprovisioned to the site on Hau Cheung Street in Yau Ma Tei. In the current legislative session, the Panel was consulted on a revised proposal for the reprovisioning project. The original proposal was discussed by the Panel in 2013 and members in general expressed support for it. However, when PWSC

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deliberated the reprovisioning project in January 2014, some Members recommended that the Administration should consider constructing additional floors in the new building with a view to optimizing land use. Besides, both the horizontal and vertical distances between RCP and SSSU should be increased so as to mitigate the potential impacts of RCP on the users in SSSU. In addition, some Members recommended altering the orientation of SSSU's main entrance to prevent it from facing the same direction as RCP's entrance. The Administration agreed to explore improvement measures and submit the revised design to LegCo for consideration. 21. At its meeting on 24 March 2016, the Panel was consulted on the revised proposal and members in general considered that it had incorporated the aforesaid improvement measures as previously suggested by Members. The Panel requested the Administration to implement the reprovisioning project and take forward the phase II development of the YMTT project as soon as practicable. Some members further suggested that the Administration should enhance collaboration between the Chinese opera sector and the tourist sector in promoting YMTT and Chinese operas to tourists. The Administration shared the view that there was room for such collaboration and agreed to render support when appropriate. The Administration undertook that it would consult the Panel on the phase II development of the YMTT project when appropriate. Free admission to permanent exhibitions of designated museums of LCSD

22. The Government has decided to make free admission to the permanent exhibitions of designated LCSD museums a standing practice with effect from 1 August 2016. Specifically, all visitors will be offered free admission to the permanent exhibitions of five designated LCSD museums6. Free admission to the permanent exhibitions of the Hong Kong Science Museum ("HKScM") and the Hong Kong Space Museum ("HKSpM") will be offered to full-time students only. Members in general expressed support for the free admission initiative so as to encourage more visits to the museums and enrich the cultural life of Hong Kong people. Some members questioned why free admission to the permanent exhibitions of HKScM and HKSpM would be offered to full-time students only. The Administration explained that this was proposed taking into consideration the capacity constraints of HKScM and HKSpM as well as the policy objective of enhancing the promotion of science and astronomical knowledge among students. 23. To further encourage more visits to the museums, some members suggested that for the non-permanent exhibitions of all LCSD museums,

6 The five designated LCSD museums are the Hong Kong Museum of Art, Hong Kong Museum of History, Hong Kong Heritage Museum, Hong Kong Museum of Coastal Defence and Dr Sun Yat-sen Museum.

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consideration might be given to charging local people concessionary fees or offering them free admission. The Administration was requested to explore audience building measures as well as improvement of museum facilities and visitor services, so as to enhance the attractiveness of the public museums and encourage museum visits.

Sport and recreation

Sports development programmes for young people

24. Members attached great importance to sport promotion. They requested the Administration to take proactive measures to encourage more people to regularly participate in sports activities and to nurture young athletes. In the current legislative session, the Panel discussed the latest situation of the programmes to encourage young people to participate in sport. Members noted that the School Sports Programme ("SSP") implemented by LCSD aimed to develop the interests of students in sport, encourage them to participate in sport regularly, and identify potential student athletes for further training. In 2015-2016, about 90% of schools in Hong Kong took part in SSP and over 8 000 programmes were organized for about 611 000 students. Retired athletes were posted to participating secondary schools of SSP so as to enhance the level of sports in schools. The retired athletes introduced over 80 new types of sports, formed 77 new school teams and referred about 100 students with potential to national sports associations ("NSAs") for further training. 25. At the community level, in 2015-2016, LCSD organized around 23 000 recreation and sports activities in 18 districts. Among the participants, 280 000 were young people aged under 24. NSAs and other sports organizations also organized a large number of sports promotion progammes to attract more young people to join. As for the development of young elite athletes, the Hong Kong Sports Institute ("HKSI") currently provided support to 1 195 scholarship athletes, of whom 365 were junior athletes. 26. Some members suggested that the Administration should conduct a study on the demographic profile of different districts and draw reference to the findings in devising programmes to promote community sports for various age groups. Members also requested the Administration to allocate more resources to enhance provision of sports facilities in districts. The Administration advised that LCSD was committed to providing more sports facilities to meet public demand. In response to members' request, the Administration agreed to conduct a study on the overall provision of sports venues and facilities in Hong Kong. Some members suggested that the Administration should take measures to address the specific concerns of student athletes. The Administration advised that HKSI had launched the "HKSI Elite Athletes-friendly School Network" and participating schools offered individualized academic support to student athletes

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and other flexible arrangements to accommodate student athletes' elite training and study needs.

Youth development

Youth development policy and the latest development of the Youth Development Fund ("YDF")

27. The Panel received an update on the latest progress of the Home Affairs Bureau's ("HAB") work on youth development including the implementation of YDF. While recognizing that the Government had allocated considerable resources to its work on youth development, some members considered that there was room for improvement in enhancing the consultation mechanism to solicit the views of young people. Some members also suggested that young people should be encouraged to make use of their creativity to promote government policies. The Administration advised that it had all along encouraged young people to give views on government policies through consultation at different levels and through various channels, including DCs, the Commission on Youth ("CoY") and the appointment of young people with different backgrounds as members of various advisory and statutory bodies. 28. While expressing support for the initiative of expansion of the International Youth Exchange Programme and the Summer Exchange Programme to provide opportunities for young people to have exchanges with their overseas counterparts, some members expressed concern about the pilot Funding Scheme for Exchange in Belt and Road Countries ("the Funding Scheme") to support non-profit-making organizations or statutory bodies to organize exchange tours to Belt and Road countries for young people. Members noted that under the Funding Scheme, more than 100 applications had been received. Some members requested the Administration to enhance the transparency of the Funding Scheme by providing details of the exchange programmes and information on the organizations which succeeded in applying for the funds. The Administration undertook to provide the requisite information in due course after completion of the vetting and approval process. 29. The Panel continued to monitor the setting up of YDF7. Members noted that preparatory work for YDF had been completed and it would be open for application shortly. Some members expressed concern about the monitoring mechanism to be put in place to ensure prudent use of grants from YDF. The Administration advised that it would closely monitor the participating NGOs to ensure that they approved relevant funding applications in a fair and impartial

7 In his 2015 Policy Address, CE proposed to set up a $300 million YDF in the form of matching funds for collaboration with non-governmental organizations ("NGOs") to assist young people in starting their own businesses. The fund will also subsidize innovative youth development activities not covered by existing schemes.

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manner. Representatives of both HAB and CoY might attend any project activity as observers to monitor the progress of the projects. Should any irregularities be found, the Government reserved the right to recover from the participating organizations any disbursement in full. Some members considered that to support youth entrepreneurship projects, it would not be adequate for the Government to just provide fund through YDF. They considered it equally important for the Government to make available premises at affordable rent to assist young people in starting their own businesses. The Administration advised that it would involve the concerted efforts of relevant bureaux/departments to tackle the issue of land resources. As far as HAB was concerned, it would make sustained efforts in developing more arts space at an affordable rate for artists or arts groups to use as offices, studios, etc. Youth Hostel Scheme8 ("YHS")

30. The Administration consulted members on the capital works proposals for two YHS projects, namely the youth hostel development by Po Leung Kuk in Yuen Long and the youth hostel development by The Hong Kong Federation of Youth Groups in Tai Po. Members in general expressed support for the two projects. Some members, however, expressed opposition to the requirement that youth hostel tenants would have to withdraw their applications from the public rental housing upon acceptance of tenancy offered by youth hostels. They considered that this would pose difficulties to low-income youths given that the aggregate tenancy period could not exceed five years. The Administration explained that as housing was a precious resource in Hong Kong, it was necessary to avoid double benefits. The said requirement aimed to avoid unfairness to those who were not youth hostel tenants.

31. Some members expressed concern about the disposal of the surplus from the hostel operation under YHS and the relevant monitoring mechanism. The Administration advised that to ensure each youth hostel was developed and operated in accordance with the policy objectives, NGOs would be governed by a Grant and Operation Agreement ("GOA") and land leases. GOA would set out the parameters under which NGOs would manage and maintain the youth hostels. For example, NGOs would be required to establish a mandatory reserve to cover the maintenance cost for the hostels during the lease term. NGOs would have to seek prior approval from the Secretary for Home Affairs ("SHA") if they wished to transfer some of the extra operating surplus, after fulfilling the mandatory reserve requirement, to support other non-profitable services.

8 Under YHS, NGOs will be fully funded by the Government to construct youth hostels on sites owned by the NGOs. Upon completion, NGOs will run the youth hostels on a self-financing basis. To enable the young tenants to accumulate savings to pursue their medium term aspirations in personal development, NGOs are to set the rental at a level which does not exceed 60% of the market rent of flats of similar size in the nearby areas. The target tenants of YHS are working youths who are Hong Kong permanent residents aged 18 to 30.

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32. The Administration advised that it would consult relevant DCs and the Town Planning Board on the remaining three YHS projects in Sheung Wan, Mong Kok and Jordan. The five projects together would provide about 2 700 places for young people. The construction of the first youth hostel was expected to be completed in 2018. Members requested the Administration to increase the provision of more places under YHS so as to benefit more young people. The Administration undertook that it would actively liaise with other interested NGOs with a view to assisting them to roll out new YHS projects. Public consultation on the review of the Building Management Ordinance (Cap. 344) ("BMO")

33. The Administration published a consultation document entitled "Review of the Building Management Ordinance (Cap. 344)" in November 2014 for public consultation which ended on 2 February 2015. In the current legislative session, the Administration briefed the Panel on the outcome of the public consultation exercise and the proposed way forward. 34. A wide range of building management issues were covered in the consultation document. In particular, members expressed concern about the definition of "large-scale maintenance projects" and the Administration's proposal regarding the threshold for terminating the appointment of deed of mutual covenant managers ("DMC managers") and the term of appointment of DMC managers. The Administration proposed to maintain the existing threshold for terminating the appointment of DMC managers with the support of not less than 50% of the owners. The Administration also proposed that, as an additional arrangement, the term of appointment of DMC managers would be automatically terminated five years after the formation of an owners' corporation ("OC"), and by then the OC could choose to enter into a new contract and negotiate new contract terms (such as the tenure of appointment and remuneration) with the existing DMC manager or engage a new manager/service provider through open tender. Some members expressed concern that for those buildings which were unable to form OC, the appointment of the DMC managers would then continue indefinitely. These members also considered that there would be diverse views in the community on the proposed retention of the existing threshold for terminating the appointment of DMC managers with the support of not less than 50% of the owners. 35. Some members opined that apart from enhancing relevant provisions in BMO, the Administration should put in place measures to facilitate effective enforcement of BMO in order to better tackle building management issues. Such measures should include enhancing the role of Liaison Officers engaged in building management duties and establishing a Building Affairs Tribunal dedicated to handling building management matters. There was also a

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suggestion that more criminal sanctions should be provided in BMO to deter people, including members of the management committee, from breaching the requirements of BMO.

36. The Administration advised that it would carefully consider the consultation outcome in finalizing the relevant legislative amendment proposals. The Administration will consult the Panel again in the next LegCo term when the proposals are available. Enhancement measures of Enhancing Self-Reliance Through District Partnership Programme ("ESRP")

37. The Home Affairs Department has implemented ESRP since 2006 to provide seed grants to eligible non-profit-making organizations for setting up social enterprises ("SEs"). The Administration consulted the Panel on measures to enhance ESRP starting from 2016-2017. Such measures included, among others, opening ESRP to members of the public with commercial experience9 to apply for participation in SE development, and allowing SEs to share a limited degree of profits under certain conditions. The Administration explained that the new measures aimed to attract people from different backgrounds to participate in the SE sector, in order to add impetus to propel the development of the SE sector in Hong Kong.

38. Some members considered that the enhancement measures of ESRP to encourage the engagement of the business sector including profit sharing were creative and appropriate. Some other members, however, expressed concern as to whether profit sharing might drive the relevant SEs to become commercial in nature and they would no longer be pursuing their original social objectives. The Administration explained that although SEs were not targeting at maximizing profits, their provision of some financial rewards could encourage retired entrepreneurs, executives or youngsters who intended to start up their own business to dedicate themselves to the development of SEs. Nevertheless, to address members' concern, the Administration undertook to tighten the monitoring on the profit-sharing SEs. ESRP would not only require the grantees to invest no less than the Government's grant, but also restrict the percentage of dividends to be distributed (i.e. the distribution of dividends of more than 20% of the profit would be allowed only with the prior approval of the Government, but would be capped at 35% in any event). In addition, the assets lock period would be extended from the current six years to eight years. The new measures

9 The eligibility requirement of ESRP would be extended mainly to companies formed by those with experience in running SEs, including (i) existing SEs; (ii) companies set up by entrepreneurs with previous successful experience in operating SEs (e.g. retired entrepreneurs or experienced executives); and (iii) companies set up by youngsters who had been participants of SE competitions or similar events organized by the Government or the community and had successfully run the SE prototypes for a period of time.

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would be carried out in the form of a pilot scheme, which would be reviewed after three years of implementation. Other issues

39. The Panel received a briefing by SHA on CE's 2016 Policy Address. The Panel was also consulted on a capital works proposal regarding the development of a sports centre, a community hall and football pitches at Area 1, Tai Po, as well as a staffing proposal relating to the Kai Tak Multi-purpose Sports Complex Project. Meetings held and visits conducted

40. During the period between October 2015 and June 2016, the Panel held a total of nine meetings. The Panel also conducted the following visits: (a) visit to HKSI to better understand its latest development and the

training of elite athletes; and (b) visit to the Kowloon Tsai Park and the Hong Kong Stadium to

observe the quality of the turf football pitches and relevant maintenance work.

Council Business Division 2 Legislative Council Secretariat 30 June 2016

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Appendix I

Legislative Council

Panel on Home Affairs

Terms of Reference 1. To monitor and examine Government policies and issues of public concern

relating to district, community and rural matters, civic education, building management, youth matters, provision of leisure and cultural services, development of arts and culture, public entertainment, sport and recreation.

2. To provide a forum for the exchange and dissemination of views on the

above policy matters. 3. To receive briefings and to formulate views on any major legislative or

financial proposals in respect of the above policy areas prior to their formal introduction to the Council or Finance Committee.

4. To monitor and examine, to the extent it considers necessary, the above

policy matters referred to it by a member of the Panel or by the House Committee.

5. To make reports to the Council or to the House Committee as required by

the Rules of Procedure.

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Panel on Home Affairs

Membership list for the 2015-2016 session

Chairman Hon Starry LEE Wai-king, JP

Deputy Chairman Hon YIU Si-wing, BBS

Members Hon WONG Ting-kwong, SBS, JP

Hon Cyd HO Sau-lan, JP Dr Hon LAM Tai-fai, SBS, JP Hon IP Kwok-him, GBS, JP Hon Claudia MO Hon NG Leung-sing, SBS, JP Hon Steven HO Chun-yin, BBS Hon Frankie YICK Chi-ming, JP Hon WU Chi-wai, MH Hon MA Fung-kwok, SBS, JP Hon CHAN Chi-chuen Hon CHAN Han-pan, JP Dr Hon Kenneth CHAN Ka-lok Hon CHAN Yuen-han, SBS, JP Hon LEUNG Che-cheung, BBS, MH, JP Hon Christopher CHEUNG Wah-fung, SBS, JP Dr Hon Fernando CHEUNG Chiu-hung Hon IP Kin-yuen Hon TANG Ka-piu, JP Hon Christopher CHUNG Shu-kun, BBS, MH, JP Hon Tony TSE Wai-chuen, BBS Hon Alvin YEUNG Ngok-kiu (since 4 March 2016)

(Total : 24 Members)

Clerk

Ms Joanne MAK

Legal Adviser

Ms Vanessa CHENG

Date 4 March 2016

Appendix II